- CFA Exams
- CFA Level I Exam
- Study Session 17. Portfolio Management (2)
- Reading 47. Analysis of Active Portfolio Management
- Subject 5. Practical Limitations
CFA Practice Question
Suppose there are two information sources. The IC for each source is 0.05. The correlation between the two sources is 1. The skill level of the combined sources is ______.
A. 0.05
B. 0.055
C. 0.06
Explanation: No calculation is needed as they are perfectly correlated.
User Contributed Comments 1
| User | Comment |
|---|---|
| LyncKidd | Wish the calculation were provided, I'm trying to learn how to calculate it for situations where it is not perfectly correlated. |